ch16 evans ba1e

8/10/2019 Ch16 Evans BA1e

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DEMAND MODEL PriceD = 2000 - 3P Demand

COST MODEL Total CostC = 5000 + 4D = 5000 + 4 x ( 2000 - 3P) = 13000 - 12P

Total RevenueTOTAL REVENUETR = D x P = ( 2000 - 3P) x P = 2000P - 3 P^2 Total Profit

TOTAL COSTTC = 13000 - 12P

TOTAL PROFITTP = TR - TC= 2000P - 3 P^2 - (13000 - 12P)= -13,000 + 2012 P - 3 P^2


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335.33$994

8,976.00$

333,321.33$

324,345.33$


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P D600.00$ 500300.00$ 1200

Revenue = P x D= P x (-2.333 P + 1900 )= -2.333 P^2 + 1900 P

Price 407.15$Demand 950 Revenue 386,791.24$


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PRICE QTY SOLD REVENUE TOTAL REVA 26.81$ 20.00 (0.62) 0.30 13.31 356.81$ 748.06$B 33.10$ 29.00 0.10 (0.60) 11.82 391.25$

Model Parameters


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Pricing Decision Model

InputsPrice 500.00$


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Marquis Hotel Pricing Model

Data

Current Average Total RoomRoom type Rate Daily Sold Elasticity Capacity

Standard 85.00$ 250 -1.5 450Gold 98.00$ 100 -2Platinum 139.00$ 50 -1

Suite 180.00$ 20 -2.5

ModelProjected

Rooms ProjectedRoom type New Price Sold Revenue

Standard 84.58$ 70.00$ 90.00$ 252 21,301.12$Gold 87.25$ 90.00$ 110.00$ 122 10,639.07$

Platinum 152.75$ 120.00$ 149.00$ 45 6,881.98$Suite 139.75$ 150.00$ 200.00$ 31 4,357.47$

Totals 450 43,179.63$

Price Range


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Neighborhood X-Coordinate Y-Coordinate Relative SizeLiberty 2 12 1

Jefferson 9 6 2

Adams 1 1 8

Location of Restaurant 1.00 1.00


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X-Distance toRestaurant

Y-Distance toRestaurant

Straight LineDistance toRestaurant

1.00 11.00 11.05 8.00 5.00 9.43

0.00 (0.00) 0.00 29.91 TOTAL WEIGHTED D


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ISTANCE


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Neighborhood X-Coordinate Y-Coordinate TruckloadsA 18 15 12B 3 4 18C 20 5 24

D 3 16 12E 10 20 18

Location of Warehouse 12.00 11.99


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X-Distance toWarehouse

Y-Distance toWarehouse

Straight LineDistance to WH

6.00 3.01 6.71 (9.00) (7.99) 12.04 8.00 (6.99) 10.62

(9.00) 4.01 9.86 (2.00) 8.01 8.26 818.99 TOTAL WEIGHTED D


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ISTANCE


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PARAMETERSANNUAL DEMAND 60000

Fixed Ordering Cost 50.00$Purchase cost 3.95$

Holding rate 15%Holding cost 0.59$

DECISIONSNumber of Orders 18.85

Order quantity 3,182.23

CALCULATIONSTotal Ordering 942.74$

Total holding 942.74$Total purchase 237,000.00$

Item ATC 238,885.47$Total ATC 238,885.47$


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SENSITIVITY REPORTItem 3

1000 Objective Cell (Min)Cell Name Final Value

125.00$ $C$20 Total ATC Item 1 389581.401580.00$

0.20 Decision Variable Cells16.00$ Final

Cell Name Value$C$11 Number of Orders Item 1 22.48

15.58 $D$11 Number of Orders Item 2 16.76 $E$11 Number of Orders Item 3 15.58

64.19 Constraints

Final1,947.26$ Cell Name Value

513.54$ $C$23 Inventory Value 20,000.02$80,000.00$82,460.80$ Interpretations:

If Budget constraint was relaxed, for each dollar increase in the budgetreduce the total cost by 28 cents.

Budget20,000.00$


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ReducedGradient

- 0.01 0.05

LagrangeMultiplier

(0.28)$

ne could


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PARAMETERS Item 1 Item 2ANNUAL DEMAND 5000 1000

Fixed Ordering Cost 75.00$ 50.00$Purchase cost 100.00$ 300.00$

Holding rate 0.20 0.20 Holding cost 20.00$ 60.00$

Floor Space/Unit 2.00 1.50

DECISIONSNumber of Orders 57.40 34.52

Order quantity 87.11 28.97

CALCULATIONSTotal Ordering 4,304.81$ 1,725.82$

Total holding 871.12$ 869.15$Total purchase 500,000.00$ 300,000.00$

Item ATC 505,175.93$ 302,594.97$Total ATC 5,773,455.19$ OBJECTIVE

Space Required500.00


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SENSITIVITY REPORTItem 3 Item 4

7500 6000 Obje Cell$C$21

50.00$ 75.00$500.00$ 200.00$

0.20 0.20 Decision Variable Cells100.00$ 40.00$ Cell

3.00 1.00 $C$12$D$12$E$12

127.94 56.36 $F$12

58.62 106.46 Constraints

Cell6,397.04$ 4,227.07$ $C$242,931.04$ 2,129.13$

3,750,000.00$ 1,200,000.00$ Interpretations:3,759,328.08$ 1,206,356.21$ If Space constraint was relaxed,

reduce the total cost by $19.71.

Space Available500.00


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Name Final ValueTotal ATC Item 1 5773455.192

Final ReducedName Value Gradient

Number of Orders Item 1 57.40 - Number of Orders Item 2 34.52 0.00 Number of Orders Item 3 127.94 0.00 Number of Orders Item 4 56.36 (0.00)

Final LagrangeName Value Multiplier

Space Required 500.00 (19.71)

for each sq ft increase in the space one could.


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Home Market Value

House Age Square Fe Market ValPredicted Errors SSE33 1812 90000 96159.13 -6159.13 2,124,436,092.98 32 1914 104400 99732.84 4667.16332 1842 93300 97210.22 -3910.22

33 1812 91000 96159.13 -5159.1332 1836 101900 97000 490033 2028 108500 103727 4773.01732 1732 87600 93356.22 -5756.2233 1850 96000 97490.51 -1490.5132 1791 89200 95423.36 -6223.3633 1666 88400 91043.82 -2643.8232 1852 100800 97560.58 3239.41832 1620 96700 89432.14 7267.85732 1692 87500 91954.76 -4454.7632 2372 114000 115779.5 -1779.532 2372 113200 115779.5 -2579.533 1666 87500 91043.82 -3543.8232 2123 116100 107055.4 9044.56132 1620 94700 89432.14 5267.85732 1731 86400 93321.18 -6921.1832 1666 87100 91043.82 -3943.8228 1520 83400 85928.51 -2528.5127 1484 79800 84667.2 -4867.228 1588 81500 88310.98 -6810.9828 1598 87100 88661.34 -1561.34

28 1484 82600 84667.2 -2067.228 1484 78800 84667.2 -5867.228 1520 87600 85928.51 1671.49427 1701 94200 92270.09 1929.9128 1484 82000 84667.2 -2667.228 1468 88100 84106.61 3993.38528 1520 88100 85928.51 2171.49427 1520 88600 85928.51 2671.49427 1484 76600 84667.2 -8067.228 1520 84400 85928.51 -1528.5127 1668 90900 91113.89 -213.889

28 1588 81000 88310.98 -7310.9828 1784 91300 95178.11 -3878.1127 1484 81300 84667.2 -3367.227 1520 100700 85928.51 14771.4928 1520 87200 85928.51 1271.49427 1684 96700 91674.47 5025.52927 1581 120700 88065.72 32634.28


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Example 9.3SLOPE 35.0364 35.0360

INTERCEPT 32,673.22 32,673.00


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Glasgow Machine Tool

Unit Hours Predicted Errors SSE1 3,161.00 3,125.74 35.26 134,810.11 2 2,720.00 2,730.36 (10.36) 3 2,615.00 2,522.69 92.31

4 2,278.00 2,384.99 (106.99) 5 2,028.00 2,283.39 (255.39) 6 2,193.00 2,203.59 (10.59) 7 2,249.00 2,138.30 110.70 8 2,268.00 2,083.31 184.69 9 1,994.00 2,035.98 (41.98)

10 2,000.00 1,994.56 5.44


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a 3,125.74 b 0.20


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DTP Corporation

Product 1Advertising $ Profit(thousands) (millions)

$50 $53.89$75 $54.91

$100 $54.87$125 $55.48$150 $55.97$175 $56.02$200 $55.33$225 $56.42$250 $55.53$275 $55.77$300 $56.56$325 $56.72$350 $56.20$375 $56.15$400 $57.01

Product 2Advertising Profit

(thousands) (millions)$50 $21.49$75 $21.51

$100 $21.99$125 $21.80$150 $22.21$175 $22.23$200 $22.32$225 $22.12

$250 $22.20$275 $22.47$300 $22.08$325 $22.22$350 $22.31$375 $22.20$400 $22.53

y = -0.000018x 2 + 0.014021x + 53.736383

R = 0.742376

53.554

54.555

55.556

56.557

57.5

0 100 200 300 400 500

P r o

f i t

Advertising

Product 1

y = -0.000010x 2 + 0.006789x + 21.234515R = 0.729721

21.4

21.621.8

22

22.2

22.4

22.6

0 100 200 300 400 500

P r o

f i t

Advertising

Product 2


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Hal Chase Agency

Stock Bond SCIPAverage return 14.80% 6.00% 15.20%

Variance 0.014697 0.000155 0.160791

Covariance with stock 0.000468 (0.002222) Covariance with bond (0.000227)

TOTALAmount Invested 0.6169803 0.32100086 0.06201882 1 = 1

Total Return 12.00% >= 12%

Total Variance 0.0063


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Capacity1200

800

15001500

Chosen011 TOTAL


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Fund Risk Type Return CHOSEN Percentage1 High Stock 11.98% 0 0%


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0% High Risk Limit 40% = 25%0%0%

0% TOTAL RETURN 12.78%40%

0%40%

0%0%0%0%0%

40%0%0%

40%


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PARAMETERSANNUAL DEMAND 15000

Fixed Ordering Cost 200.00$Purchase cost 22.00$ for the first 1000 $19 for any additional

Holding rate 20%Holding cost 4.40$

DECISIONSNumber of Orders 4.22

Order quantity 3,554.09

CALCULATIONSTotal Ordering 844.10$

Total holding 11,905.55$Total purchase 297,661.46$

Item ATC 310,411.11$Total ATC 310,411.11$


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Stout Investments

Bond S&P 500 Small cap Mid capBond 0.002%

S&P 500 -0.001% 0.020%Small cap -0.001% 0.027% 0.047%

Mid cap -0.001% 0.024% 0.039% 0.033%Large cap -0.001% 0.019% 0.027% 0.023%Emerging market 0.000% 0.032% 0.050% 0.043%

Commodity 0.000% 0.000% 0.005% 0.005%

Average weekly return 0.044% 0.118% 0.256% 0.226%

In this problm, the student is expected to generate a range of scenarios and solve the model for different targe


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Large cap Emerging market Commodity

0.027%0.041% 0.085%0.009% 0.015% 0.054%

0.242% 0.477% 0.053%

ts and visualize the solution using the ideas discussed in previous chapters.


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Thomson State College

Project 1 2 3 4 5 6 7Time 4 9 12 16 9 15 8

Deadline 12 24 60 28 24 36 48

SEQUENCE 1 2 3 4 5 6 7JOB 1 7 2 5 3 6 4Processing Time 4 8 9 9 12 15 16

Completion Time 4 12 21 30 42 57 73Due Date 12 48 24 24 60 36 28Lateness -8 -36 -3 6 -18 21 45

Tardiness 0 0 0 6 0 21 45

Average Lateness 1.00 Average Tardiness 10.29


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SPT


Completion Time 4 12 21 30 42 57 73Due Date 12 48 24 24 60 36 28Lateness -8 -36 -3 6 -18 21 45

Tardiness 0 0 0 6 0 21 45


EDDSEQUENCE 1 2 3 4 5 6 7

JOB 1 2 5 4 6 7 3Processing Time 4 9 9 16 15 8 12

Completion Time 4 13 22 38 53 61 73Due Date 12 24 24 28 36 48 60Lateness -8 -11 -2 10 17 13 13

Tardiness 0 0 0 10 17 13 13

Average Lateness 4.57

Average Tardiness 7.57


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Thomson State College

Project 1 2 3 4 5 6 7Time 4 9 12 16 9 15 8

Deadline 12 24 60 28 24 36 48


Completion Time 4 13 22 37 45 57 73Due Date 12 24 24 36 48 60 28Lateness -8 -11 -2 1 -3 -3 45

Tardiness 0 0 0 1 0 0 45



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Tracy Ross Travel Distances

ToFrom 1 2 3 4 5 6 7 8

1 999 19 57 51 49 4 12 922 19 999 51 10 53 25 80 53

3 57 51 999 49 18 30 6 474 51 10 49 999 50 11 91 385 49 53 18 50 999 68 62 96 4 25 30 11 68 999 48 947 12 80 6 91 62 48 999 98 92 53 47 38 9 94 9 999

ORDER Distance FROM TO1 7 9 7 82 8 9 8 53 5 18 5 34 3 30 3 65 6 11 6 46 4 10 4 27 2 19 2 18 1 12 1 7

118 TOTAL

ch16 evans ba1e

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